FHFA Reports October Mortgage Rates Fell While Fees Increased

The effective interest rate, which reflects the amortization of initial fees and charges, was 3.57% in October, down 10 basis points from September.

Both figures represent a composite rate of all mortgages, the FHFA said in a release, including both fixed and adjustable rates.

Breaking rates down by loan category, the average interest rate on conventional, 30-year, fixed-rate mortgage loans decreased 14 basis points to 3.62% in September. The survey reported loans closed during Oct. 25 - 31, the FHFA said, and typically such rates are determined 30 to 45 days before the loan is closed.

The agency reported no data on adjustable-rate mortgages due to insufficient sample size.

Lenders reported that fees were 1.05% of the loan balance in October, up 10 basis points

from September. Twenty-one percent of the purchase-money mortgage loans originated in September was "no-point" mortgages, down 1% from September.

The average term was 27.5 years in October, up slightly from the previous month. The average loan-to-value ratio was 75.8% in October, up 0.2% from September. Average loan amounts increased $2,800 to $257,400 during that period.

The data excludes FHA-insured and VA-guaranteed mortgages, refinancing loans, and